NYC Councilman wants probe of Comptroller Brad Lander for possible conflicts of interest in wife’s role as consultant

A New York City Councilman is demanding the Department of Investigation probe possible conflicts of interest between Comptroller Brad Lander and his wife’s role as a consultant for nonprofits his office is supposed to oversee.

Councilman Bob Holden (D-Queens) made the request last month to DOI Commissioner Jocelyn Strauber and Carolyn Miller, executive director of the city’s Conflicts of Interest Board, in a letter the Daily News obtained Friday.

As The News first reported in July, Lander’s office, which serves as the city’s fiscal watchdog, approved about $550 million in contracts with nonprofits that are members of an umbrella group that his wife, Meg Barnette, oversees.

Lander has noted repeatedly that he received a seal of approval from the Conflicts of Interest Board for his office’s review of contracts with nonprofits tied to Nonprofit New York, where Barnette serves as CEO and president.

But Holden does not view that as sufficient.

In his letter dated Nov. 29, the councilman notes that as president and CEO of Nonprofit New York, Barnette “has an interest in the success of over 4,000 nonprofit organizations.”

Some of those have contracts with the city that Lander’s office signs off on.

“There must be transparency so that New Yorkers know that there is no conflict of interest between what is best for New York City taxpayers and the financial interests of Brad Lander and his family,” Holden wrote.

“Media reports routinely feature nonprofit social-service providers that are not fulfilling their contractual obligations and in many cases committing criminal acts,” he continued. “Unfortunately, the Comptroller’s office never publicly audits these providers. The public should know if the Comptroller’s wife is consulting for the same nonprofits the Comptroller is supposed to oversee to prevent waste, fraud, and abuse.”

Naomi Dann, a spokeswoman for Lander, accused Holden and The News of a “willful misunderstanding of basic facts.”

“The Conflicts of Interest Board has repeatedly affirmed present no conflict,” she noted.

In October, The News reported that the comptroller’s office registered five contracts with The Door, a nonprofit that agreed to pay out $13 million to settle a federal false claims lawsuit. Two of those contracts had start dates after the settlement occurred.

At the time, Michael Lambert, a former deputy city comptroller, described the situation as “unusual” and “uncharacteristic of the way the process is supposed to work,” given The Door’s prior legal troubles.

“The vetting process is to weed out possible illegality and fraud,” Lambert said at the time.

The comptroller’s office is responsible for registering city contracts. As part of that process, contracts are first typically reviewed by the deputy commissioner of contracts. If contracts are red-flagged for any reason, they can be brought to the comptroller’s attention as well.

In January, Holden sent a letter to Lander requesting an audit of the Cooper Rapid Rehousing Center, which is operated by Westhab, a member of Nonprofit New York that has contracts with the city’s Department of Homeless Services.

“DHS required Westhab to provide residents with employment services, broker outreach for housing assistance, and life skills programming. Unfortunately, residents of the shelter come into my office informing us that none of these services are offered,” Holden wrote at the time. “We must be proactive in ensuring our social service providers meet their contractual requirements and help those in need. I stand ready to assist you in any way I can.”

In his subsequent letter to the Department of Investigation and the Conflicts of Interest Board, Holden wrote he still hadn’t received a response to his January missive to Lander, who before becoming comptroller also served on the City Council.

“When I asked that the Comptroller audit Westhab I only received silence from his office,” he wrote in the more recent November letter. “The sheer volume of city and state contracts for nonprofits makes transparency difficult in even the best of circumstances. I ask that you investigate this matter so that all New Yorkers know their tax dollars are being spent appropriately.”

The DOI confirmed receipt of the letter, but declined to comment on the matter. COIB declined to comment as well, citing legally mandated confidentiality.